2 : 7 - The Development of Pensions

Question 1

What does the EU’s Transfers of Undertakings Directive (2001) require?

Answer 1

That all employers to specifically guarantee that no changes are made to any employer pension schemes, even in the event of the business being sold to another firm or entity.

Question 2

What level of FTSE 100 companies’ revenue comes from foreign markets

Answer 2

77%

Question 3

Are UK pensions are portable overseas?

Answer 3

Not hugely

Question 4

For a stakeholder- type pension, once a member moves abroad they can only contribute for how long?

Answer 4

Another five years

Question 5

What is the issue if a pension is UK-based and the individual decides to retire abroad?

Answer 5

The income is then subject to currency fluctuations

Question 6

What is the EU Links & Information on Social Security (EUlisses)?

Answer 6

The EU agreement in place that state pension provision is transferable between member states

Question 7

With multinational companies, what is a vesting period?

Answer 7

If the employee leaves within a certain period the contributions remain the property of the employer

Question 8

What is a private international pension?

Answer 8

This is placed in one domicile (possibly the final retirement destination) or an offshore financial centre. This may provide the added benefit of no or low taxation on the growth of the pension pot; however, the fund will be liable to taxation when it is finally drawn as a pension, especially if it is received in a high-tax country.